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Snacks / Monday, February 27, 2023

Missed the bull’s-eye?… Target is expected to report lower sales and profits tomorrow. Walmart unboxed a strong holiday quarter last week as discount seekers flocked to its aisles for essentials like food (groceries = over half of Walmart’s sales). But America’s largest retailer warned that customers are cutting back on higher-margin discretionary items (think: clothes, decor, TVs). That’s even worse news for Target, since discretionary goods make up 60% of its sales. Analysts expect Target’s profit will have dropped by more than half.

The doctor will FaceTime you now… Telemedicine companies like Teledoc, which reported last week, rode the lockdown wave to ballooning growth. But now many IRL doc offices are open and the US government’s Covid emergency declaration is on track to end in May (think: a possible end to video-call Adderall prescriptions). And the shine may be coming off telemedicine's apple. If Teledoc's disappointing forecast is any indication, Hims & Hers Health and GoodRx, which report this week, may have reason to call in sick.

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